Blockchain is a computer network whereby digital information is encrypted and can be transferred between two people without any risk of fraud or theft and also eliminates the use of a third party or ‘middleman’ to administer a transaction.
Often used for the purpose of transferring cryptocurrency, in some situations the blockchain platform is demonstrating itself as an alternative to the traditional methods of banking.
Blockchain is a network controlled by several contributors rather than one owner
Blockchain comes away from the concept that money has to be centralised in one area i.e. with a bank of your choice. Instead your account and the transactions in which you administer is held on the blockchain network which is global and whereby owners of cryptocurrency can come and go, with no single individual or organisation taking sole responsibility. Trusting someone or something with your finances is no longer required as your currency is held within the ether of the blockchain and instead transactions are relayed, verified, stored and encrypted by nodes which are based all over the world.
In some ways this concept isn’t new to us. Rather than using physical notes and coins, the method of transferring money digitally to make payments has been adopted for some time now by businesses and individuals. The biggest leap however, is how we embrace the use of the blockchain network to make and receive payments in the future. It could transfer the way money is moved around – similar to how the likes of Amazon, EBay and ASOS have all changed the way we shop online.
For more information on blockchain and to discuss the influences that it could have on your business, please contact Crendon Insurance Ltd. We provide cyber attack insurance cover to businesses for those who are looking for something more bespoke. With extensive knowledge into cyber security and the protection of data, we will tailor an insurance policy to suit your business needs.
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